BLANKFEIN: Any Fiscal Cliff Deal Is Going To Hurt The Economy

Lloyd Blankfein

Photo: Jay Yarow, Business Insider

Just now at the DealBook conference, Goldman CEO Lloyd Blankfein spoke to Andrew Ross Sorkin.Below are our notes.

— Blankfein: White House marketing their position. If this were any place other than Washington, there would be a 100% chance of a deal.

— The fact that there’s so little compromise is predictable given extremes on both parties.

— “Any side that puts out its compromise position now will get shot at.. by its own side.”

— Blankfein: “Any compromise will involve some dose of austerity… AKA deflationary policy.” In the near term, we’re not going to get escape velocity because of fiscal headwinds.

— Economy is like 1944 in WWII. Not quite won, but it’s clear who will win.

— Blankfein: In some industries, they have their wives go out and start their car in the morning. I had my wife read the paper.

— “Of course” we’re going to stay in France.

— Sorkin asking Blankfein about money and inequality.

— Blankfein: “We have two responsibilities… we have responsibility to enlarge the pie. And distribute it in a fair way… doesn’t mean equal”

— I like the fact that we’ve had as much growth in our country as we’ve had. I rue the fact that the discrepancy has widened, not contracted.

— Unless there’s some redistribution that occurs, we won’t have a stable society.

— Blankfein no interest in stopping. Enjoying it.

— Does the next CEO of Goldman Sachs work at Goldman Sachs? Close to 100% chance .

Interview over.

 

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